for the first time in four years with tax hikes and budget cuts. it sounds reasonably constructive but is it less than meets the eye? abc's reena ninan is in washington this morning. what's the real story here. >> reporter: dan, you would think progress but really not really. no republican senator voted in favor of this budget. and the republican controlled house has their own very different plan. it's against the new taxes in the current senate plan and also calls for more spending cuts. the truth is neither budget plan will ever be put in and despite all that, the senate leaders sounded optimistic. >> i know everyone is exhausted and you may not feel it at the moment, but this is one of the senate's finest days in recent years. >> hard to understand why he sounds so optimistic calling this one of the finest days. there's another cliff looming. can you tell us about that? >> reporter: the senate and house will have to reconcile their differences. if not, surprise, there will be another showdown likely in august over the debt limit. >> your government at work. ladies and gentlemen.